AFRC 2025–26 Annual Report Highlights Audit Quality, Governance and Future-Ready Reporting

The Accounting and Financial Reporting Council (AFRC) published its 2025–26 Annual Report on 24 June 2026. The report, themed “Accounting for the Future”, outlines the AFRC’s work in promoting audit and financial reporting excellence, reinforcing Hong Kong’s role as a global financial hub, and supporting the long-term development of the accounting profession. According to the AFRC, during the reporting period it issued 16 publications and held 102 stakeholder engagement activities, reaching more than 37,000 stakeholders. The report also highlights areas including regulatory compliance, audit quality, corporate governance, AI innovation and sustainability. For Hong Kong companies, these themes are a useful reminder that audit preparation and financial reporting are not only year-end formalities. Directors and management teams may need to maintain clear accounting records, strengthen internal review processes, and ensure that audit and reporting arrangements are planned with sufficient time. Companies preparing for annual audit, financial statements or corporate compliance work should review whether their records, supporting documents and reporting timetable are ready. Professional accounting and audit support can help businesses organise information more consistently and reduce avoidable delays. This article is for general information only and should not be treated as accounting, audit, legal or tax advice. Businesses should consider their own circumstances and seek professional advice where appropriate. Source: Accounting and Financial Reporting Council (AFRC) — https://www.afrc.org.hk/en-hk/news-centre/press-releases/afrc-issues202526-annual-report